Compliance Dictionary

Definitions of key regulatory and compliance terms used across the docs.

Regulations

Regulation	Short definition
5AMLD / 6AMLD	EU AML directives. Extended AML/CFT to virtual assets; defined VASPs. Member States transpose into national law.
EMD2	Electronic Money Directive 2 (EU 2009/110/EC). Defines e-money; authorizes EMIs to issue it.
FATF	Financial Action Task Force. International AML/CFT standards. 2019 guidance defined VASPs.
MiCA	Markets in Crypto-Assets Regulation (EU 2023/1114). EU framework for crypto-assets, ARTs, EMTs, CASPs.
PSD2	Payment Services Directive 2 (EU 2015/2366). Regulates payment services; authorizes PSPs and EMIs.
DORA	Digital Operational Resilience Act (EU 2022/2554). ICT risk management, incident reporting, and operational resilience for the EU financial sector.

5AMLD / 6AMLD

EU Anti-Money Laundering Directives. 5AMLD (2018/843) and 6AMLD (2018/1673) extended AML/CFT rules to virtual assets and defined VASPs. Member States must transpose into national law.

Term	Definition
VASP	Virtual Asset Service Provider. A natural or legal person that conducts one or more of the following on behalf of another: exchange between virtual assets and fiat; transfer of virtual assets; custody/administration of virtual assets; participation in financial services related to virtual assets. Broader scope than CASP; used internationally. See also FATF guidance.

EMD2

Electronic Money Directive 2 (EU 2009/110/EC). Defines e-money and authorizes EMIs to issue it. MiCA Title IV (EMTs) builds on EMD2: an EMT is the on-chain representation of e-money issued by an EMI.

Term	Definition
EMI	Electronic Money Institution. Licensed under EMD2 to issue e-money. Under MiCA Title IV, EMIs are the only entities that may issue EMTs (e-money tokens). Holds the reserve, mints/burns tokens.

FATF

Financial Action Task Force. International body that sets AML/CFT standards. FATF’s 2019 Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers first defined VASPs and obliges jurisdictions to regulate them. EU 5AMLD/6AMLD transpose these standards into Union law.

MiCA

Markets in Crypto-Assets Regulation (EU 2023/1114). EU framework for crypto-assets, ARTs, EMTs, and CASPs.

Term	Definition
ART	Asset-Referenced Token. A token that aims to maintain a stable value by referencing another value or right, or a combination thereof (e.g. basket of assets, fiat currencies). Governed by MiCA Title III. Examples: USDC, USDT. Distinguished from EMTs, which reference a single fiat currency.
CASP	Crypto-Asset Service Provider. Under MiCA Title V, a legal person whose occupation or business is to provide crypto-asset services to third parties on a professional basis. Includes custody, administration, operation of trading platforms, exchange of crypto-assets for fiat/other crypto-assets, execution of orders, portfolio management, etc. Requires authorization in the EU.
EMT	E-Money Token. Under MiCA Title IV, a type of crypto-asset that purports to maintain a stable value by referencing the value of a single fiat currency. A digital representation of e-money under EMD2. Issued by an EMI against safeguarded fiat reserves. Examples: EUR-backed stablecoins issued by licensed EMIs.
NCA	National Competent Authority. The regulator in each EU Member State (e.g. BaFin, ACPR) responsible for supervision under MiCA.

PSD2

Payment Services Directive 2 (EU 2015/2366). Regulates payment services in the EU: execution of payment transactions, issuance of payment instruments, money remittance, account information services, etc. PSPs and EMIs are authorized under PSD2.

Term	Definition
PSP	Payment Service Provider. A legal person authorized to provide payment services (execution of transfers, issuing payment instruments, acquiring, money remittance, account information, etc.). Fintechs and on-ramps often hold PSP licenses. EMIs also provide payment services under PSD2.

DORA

Digital Operational Resilience Act (EU 2022/2554). Requires EU financial entities (including EMIs, PSPs, CASPs) to manage ICT risk, report major ICT-related incidents, and ensure operational resilience. Regulates ICT third-party providers, including critical providers subject to direct EU oversight.

Term	Definition
ICT risk	Information and Communication Technology risk. Risks to confidentiality, integrity, availability, or authenticity of data and systems. DORA obliges in-scope entities to identify, manage, and mitigate ICT risk.
ICT third-party provider	Provider of ICT services to financial entities (e.g. cloud, data centres, software). DORA imposes contractual and oversight requirements; critical ICT third-party providers are designated and supervised directly by EU authorities.

Other

Term	Definition
AML/CFT	Anti-Money Laundering / Counter-Financing of Terrorism. Framework for detecting and preventing illicit fund flows (laundering of proceeds of crime; financing of terrorism). FATF sets international standards; EU 5AMLD/6AMLD transpose into Union law.
UKRC	Unique-Key Recursive Compliance. Our threshold decryption system for lawful disclosure of transaction metadata. k-of-n guardians must approve a warrant before any data is revealed. Enables chain tracing (forward/backward) while preserving privacy for normal users. See Anonymity Revoking.